A Quote by David Einhorn
We take the traditional value investor's process and just flip it around a little bit. The traditional value investor asks 'Is this cheap?' and then 'Why is it cheap?' We start by identifying a reason something might be mispriced, and then if we find a reason why something is likely mispriced, then we make a determination whether it's cheap.
Related Quotes
Nirvana, to a value investor, is paying a cheap price for a company that is growing in value every year at a nice rate - this largely explains why today we own stocks like Berkshire Hathaway, McDonald's, Wal-Mart, Microsoft, Costco and Anheuser-Busch.
In an ideal world, the intelligent investor would hold stocks only when they are cheap and sell them when they become overpriced, then duck into the bunker of bonds and cash until stocks again become cheap enough to buy.
The value of the security analyst to the investor depends largely on the investor's own attitude. If the investor asks the analyst the right questions, he is likely to get the right or at least valuable answers.
We are entering a hyperconnected world where every boss now has more access, cheap access to cheap labor, cheap genius, cheap robot, cheap software, and then this world averages over. There is only one answer to that, and that is to get everyone as close as possible to some form of post-secondary education, it could be vocational, it can be liberal arts, it can be science and technology.
You wouldn't be caught wearing cheap perfume, would you? Then why do you want to wear cheap perfume in your conduct?
There's a clarity that comes with great ideas: You can [easily and simply] explain why something's a great business, how and why it's cheap, why it's cheap for temporary reasons and how, on a normal basis, it should be trading at a much higher level. You're never sitting there on the 40th page of your spreadsheet, as Buffett would say, agonizing over whether you should buy or not.
Most people try to get rich by being cheap and the price for that is that you live cheap and there is so much money out there; why would you want to live cheap?
Beauty has became a pejorative word in art. It was not something one should aspire to, because it was pedestrian. Beautiful things became cheap and easy. If it's cheap and easy, then upper classes aren't going to aspire to it. So, they have to find something more esoteric. I wanted the paintings to be realistic enough that you would have the ability to forget that I'm showing them to you.
You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.
I do not prize the word cheap. It is not a word of inspiration. It is the badge of poverty, the signal of distress. Cheap merchandise means cheap men and cheap men mean a cheap country.
There's a lot of things that haven't been communicated to our communities. I didn't know these things myself. I didn't know that if you ate cheap food, it was like buying cheap gasoline, and there was a reason why after an hour you get headaches, or youhypoglycemic.
Cheap money feels like the most natural thing in the world - if you don't think about why it's so cheap.
If you're an investor who wants a little bit more from the capital-appreciation side of things, but still likes this concept of getting 'paid by the company,' then we would tell that investor to pursue shareholder yield.
If you're a technology investor, and you decide that you're also going to be a healthcare investor or a green-tech investor, that doesn't usually work out that well. There are reasons why people make their careers studying these things and becoming experts.
Buy cheap and sell high is a rule of business, and when you control enough money and enough banks you can always manage that a stock you want shall be temporarily cheap. No value is destroyed for you - only for the original owner.
While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.
Related Authors
Bill Gates Quotes
American
Businessman
Charlie Munger Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman
Warren Buffett Quotes
American
Businessman